Economist and former vice-presidential candidate Javier González Fraga praised the Government’s decision to end utility subsidies on corporations.
“Subsidies today benefit those who have the most and are in a condition to pay full fares,” Alfonsin’s former running mate explained.
“We need to celebrate any news that seem to be headed that way,” he said, adding that even though it is the right decision “it remains unclear as to how it is going to create investment, which is very important in order to avoid a cooling down of the economy.”
He also indicated that the hike in domestic consumption is because services are not paid in accordance to their cost of production. “But eventually subsidies for residential homes will have to be cut by some 20 billion pesos. We need to subsidize demand, not supply,” he stated.
Source: Buenos Aires Herald